CSHB 9(JUD): "An Act relating to the registration of individuals who perform home inspections; relating to regulation of contractors; relating to registration fees for specialty contractors, home inspectors, and associate home inspectors; relating to home inspection requirements for residential loans purchased or approved by the Alaska Housing Finance Corporation; relating to civil actions by and against home inspectors and to civil actions arising from residential unit inspections; and providing for an effective date."
00 CS FOR HOUSE BILL NO. 9(JUD) 01 "An Act relating to the registration of individuals who perform home inspections; 02 relating to regulation of contractors; relating to registration fees for specialty 03 contractors, home inspectors, and associate home inspectors; relating to home inspection 04 requirements for residential loans purchased or approved by the Alaska Housing 05 Finance Corporation; relating to civil actions by and against home inspectors and to 06 civil actions arising from residential unit inspections; and providing for an effective 07 date." 08 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 09 * Section 1. AS 08.01.010(12) is amended to read: 10 (12) regulation of construction contractors and home inspectors under 11 AS 08.18; 12 * Sec. 2. AS 08.01.065(c) is amended to read: 13 (c) Except as provided in (f) - (i) [(f) - (h)] of this section, the department shall
01 establish fee levels under (a) of this section so that the total amount of fees collected 02 for an occupation approximately equals the actual regulatory costs for the occupation. 03 The department shall annually review each fee level to determine whether the 04 regulatory costs of each occupation are approximately equal to fee collections related 05 to that occupation. If the review indicates that an occupation's fee collections and 06 regulatory costs are not approximately equal, the department shall calculate fee 07 adjustments and adopt regulations under (a) of this section to implement the 08 adjustments. In January of each year, the department shall report on all fee levels and 09 revisions for the previous year under this subsection to the office of management and 10 budget. If a board regulates an occupation covered by this chapter, the department 11 shall consider the board's recommendations concerning the occupation's fee levels and 12 regulatory costs before revising fee schedules to comply with this subsection. In this 13 subsection, "regulatory costs" means costs of the department that are attributable to 14 regulation of an occupation plus 15 (1) all expenses of the board that regulates the occupation if the board 16 regulates only one occupation; 17 (2) the expenses of a board that are attributable to the occupation if the 18 board regulates more than one occupation. 19 * Sec. 3. AS 08.01.065 is amended by adding a new subsection to read: 20 (i) Notwithstanding (c) of this section, the department shall establish fee levels 21 under (a) of this section so that the total amount of fees collected by the Department of 22 Community and Economic Development for specialty contractors, home inspectors, 23 and associate home inspectors approximately equals the total regulatory costs of the 24 department for those three registration categories. The department shall set the fee 25 levels for the issuance and renewal of a certificate of registration issued under 26 AS 08.18 so that the fee levels are the same for all three of these registration 27 categories and so that the fee level for a home inspector with a joint registration is not 28 different from the fee level for a home inspector who does not have a joint 29 registration. In this subsection, "joint registration" has the meaning given in 30 AS 08.18.171. 31 * Sec. 4. AS 08.18.011 is amended to read:
01 Sec. 08.18.011. Registration required. (a) A person may not submit a bid or 02 work as a contractor until that person has been issued a certificate of registration as a 03 contractor by the department. A partnership or joint venture shall be considered 04 registered as a contractor if one of the general partners or venturers whose name 05 appears in the name under which the partnership or venture does business is registered 06 as a contractor. 07 (b) A general contractor may not use a bid or proposal from, award a bid or 08 proposal to, contract with, or allow a person required to be registered under this 09 chapter to work for the general contractor as a specialty contractor unless the person is 10 registered as a specialty contractor under this chapter. 11 * Sec. 5. AS 08.18.011 is amended by adding new subsections to read: 12 (c) Unless exempt under AS 08.18.156 or serving lawfully as an associate 13 home inspector under (d) of this section, an individual may not perform a home 14 inspection 15 (1) for a residence not previously occupied as a residence unless that 16 individual is registered as a home inspector for new homes under this chapter; 17 (2) for a residence previously occupied as a residence unless that 18 individual is registered as a home inspector for existing homes under this chapter. 19 (d) Notwithstanding (c) of this section, an individual who is not registered as a 20 home inspector under this chapter may perform a home inspection as an associate 21 home inspector if the individual 22 (1) is employed by a registered home inspector who supervises the 23 associate's work and the inspection is of the type that the supervising individual is 24 authorized to perform; and 25 (2) is registered with the department as an associate home inspector. 26 (e) A registered home inspector who employs an associate home inspector 27 under (d) of this section is liable for the work done by the associate home inspector. 28 (f) An individual who holds a joint registration for home inspection is 29 considered to be registered as both a home inspector for new homes and a home 30 inspector for existing homes. 31 * Sec. 6. AS 08.18.021(a) is amended to read:
01 (a) An applicant for registration as a contractor or home inspector shall 02 submit an application under oath upon a form to be prescribed by the commissioner 03 and that [WHICH] must include the following information pertaining to the applicant: 04 (1) the applicant's [EMPLOYER] social security number; 05 (2) if applying to be a registered contractor, the type of contracting 06 activity, whether a general or a specialty contractor and, if the latter, the type of 07 specialty; 08 (3) if applying to be a registered home inspector, whether the 09 applicant is applying to inspect new homes or existing homes, or both; 10 (4) if applying to be a registered contractor, the name and address of 11 each partner if the applicant is a firm or partnership, or the name and address of the 12 owner if the applicant is an individual proprietorship, or the name and address of the 13 corporate officers and statutory agent, if any, if the applicant is a corporation; and 14 (5) if applying to be a registered home inspector, the name and 15 address of the applicant. 16 * Sec. 7. AS 08.18 is amended by adding new sections to read: 17 Sec. 08.18.022. Home inspectors; associate home inspectors. (a) The 18 department shall issue a certificate of registration as a home inspector for new homes, 19 existing homes, or both, as appropriate, to an individual who 20 (1) passes the appropriate home inspection examination; for purposes 21 of this paragraph, the appropriate home inspection examination for an individual who 22 applies to be registered for inspection of 23 (A) existing homes is the examination offered by the American 24 Society of Home Inspectors, American Home Inspectors Training Institute, or 25 National Association of Home Inspectors; 26 (B) new homes or for a joint registration is the examination 27 offered by the International Conference of Building Officials; 28 (2) meets the educational and experience requirements adopted by the 29 department in regulations for the type of registration applied for; 30 (3) submits a complete application for registration within one year 31 after passing the examination required under (1) of this subsection;
01 (4) within the seven years preceding the date of application, has not 02 been under a sentence for an offense related to forgery, theft in the first or second 03 degree, extortion, or defrauding creditors or for a felony involving dishonesty; 04 (5) has not had the authority to perform home inspections revoked in 05 this state or in another jurisdiction; 06 (6) is not the subject of an unresolved criminal complaint or 07 unresolved disciplinary action before a regulatory authority in this state or in another 08 jurisdiction related to real estate or home inspection matters; and 09 (7) pays the appropriate fees. 10 (b) An individual may register with the department as an associate home 11 inspector upon application, payment of the required fee, and determination by the 12 department that the individual 13 (1) within the seven years preceding the date of application, has not 14 been under a sentence for an offense related to forgery, theft in the first or second 15 degree, extortion, or defrauding creditors or for a felony involving dishonesty; 16 (2) has not had the authority to perform home inspections revoked in 17 this state or in another jurisdiction; and 18 (3) is not the subject of an unresolved criminal complaint or 19 unresolved disciplinary action before a regulatory authority in this state or in another 20 jurisdiction related to real estate or home inspection matters. 21 Sec. 08.18.023. Pre-inspection documents and inspection reports. (a) 22 Before performing a home inspection, a registered home inspector or associate home 23 inspector shall provide to the person on whose behalf a home is inspected a written 24 document specifying 25 (1) the scope of intended inspection; the scope of the intended 26 inspection may include systems and components that are not listed in 27 AS 08.18.171(12); and 28 (2) that the inspector will notify in writing the person on whose behalf 29 the inspection is being made of defects noted during the inspection along with a 30 recommendation, if any, that experts be retained to conduct further evaluation through 31 examination and analysis by a qualified professional, tradesperson, or service
01 technician beyond that provided by the home inspection to determine the extent of 02 defects and corrective action necessary to address the defects. 03 (b) After performance of a home inspection, a registered home inspector or 04 associate home inspector shall give a written home inspection report to the person 05 requesting the inspection. The written report must include a review of the condition of 06 each system and component identified as being within the scope of the intended 07 inspection under (a) of this section except that a home inspector's written report for 08 new construction that is the subject of a loan by the Alaska Housing Finance 09 Corporation or another lender may be in the form required by the corporation or other 10 lender, as appropriate. 11 (c) In addition to the written inspection report required under (b) of this 12 section, an oral inspection report may be given by the inspector during or after the 13 inspection. 14 (d) A home inspection report is valid for 180 days after the date the home 15 inspector signs and dates the report. 16 * Sec. 8. AS 08.18.031(a) is amended to read: 17 (a) Except as provided in (c) of this section, a [A] certificate of registration 18 shall be renewed under the same requirements as for an original registration, and the 19 [. THE] commissioner shall issue to the applicant a certificate of registration upon 20 compliance with the registration requirements of this chapter. 21 * Sec. 9. AS 08.18.031 is amended by adding a new subsection to read: 22 (c) A certificate of registration as a home inspector may not be renewed unless 23 the home inspector has complied with the continuing competency requirements 24 established by the department. The department shall adopt regulations establishing the 25 continuing competency requirements. The department shall require at least eight 26 hours of continuing competency activity for each licensing period. The regulations 27 must provide that a continuing competency activity approved by one of the following 28 entities satisfies the continuing competency requirements of this subsection if the 29 activity meets the requirements established by the department in regulations adopted 30 under this subsection: 31 (1) Alaska Housing Finance Corporation;
01 (2) University of Alaska; 02 (3) American Society of Home Inspectors Alaska Chapter; 03 (4) a chapter of the International Conference of Building Officials 04 Alaska; 05 (5) Alaska State Homebuilders Association; or 06 (6) a state agency that offers an activity that meets the requirements set 07 by the department. 08 * Sec. 10. AS 08.18.041 is amended to read: 09 Sec. 08.18.041. Fees. (a) The department shall set fees under AS 08.01.065 10 for 11 (1) registration and renewal of registration for all categories of 12 contractors; 13 (2) registration and renewal of registration for a home inspector 14 qualified to inspect new homes; 15 (3) registration and renewal of registration for a home inspector 16 qualified to inspect existing homes; 17 (4) joint registration and renewal of joint registration for home 18 inspectors; 19 (5) registration and renewal of registration as an associate home 20 inspector; 21 (6) examinations for applicants for home inspector registration; 22 (7) examination, issuance of initial endorsement, and renewal of active 23 or inactive endorsements for residential contractors; and 24 (8) [(3)] departmental publications and seminars related to this chapter. 25 (b) A person who fails a residential contractor examination or home 26 inspector examination shall pay the examination fee set by the department if the 27 person applies to retake an examination. 28 * Sec. 11. AS 08.18.051(a) is amended to read: 29 (a) Except as provided otherwise by law, a person who has registered as a 30 contractor under one name as required by this chapter may not act in the capacity of a 31 contractor under any other name unless that name also is registered.
01 * Sec. 12. AS 08.18 is amended by adding a new section to read: 02 Sec. 08.18.053. Identification requirements for home inspectors. (a) 03 Except as provided otherwise by law, an individual who is registered as a home 04 inspector or associate home inspector under this chapter by one name may not act in 05 the capacity of a home inspector or associate home inspector under any other name. 06 (b) All advertising and business cards prepared by a registered home inspector 07 or associate home inspector for the home inspection business must show the 08 inspector's name, mailing address, and registration number. 09 (c) Individual registered home inspectors and partners, associates, agents, 10 salespeople, solicitors, officers, and employees of registered home inspectors shall use 11 their true names and addresses and the true name of the home inspecting firm at all 12 times while acting in the capacity of a registered home inspector or performing related 13 activities. 14 (d) Individuals who are exempt from registration under AS 08.18.156(a) or 15 whose actions are not considered to be home inspections under AS 08.18.156(b) may 16 not hold themselves out to be registered home inspectors or use words or titles that 17 may reasonably be confused with the title of "registered home inspector" unless they 18 are registered as a home inspector under this chapter. 19 * Sec. 13. AS 08.18.061 is amended to read: 20 Sec. 08.18.061. Requirements of political subdivision. A contractor or 21 home inspector who is registered with the state under this chapter may not be 22 required to give bond in applying for or holding a license issued by a political 23 subdivision for a similar occupation. 24 * Sec. 14. AS 08.18.071(a) is amended to read: 25 (a) Each applicant shall, at the time of applying for a certificate of registration, 26 file with the commissioner a surety bond running to the state conditioned upon the 27 applicant's promise to pay all 28 (1) taxes and contributions due the state and political subdivisions; 29 (2) persons furnishing labor or material or renting or supplying 30 equipment to the applicant; and 31 (3) amounts that may be adjudged against the applicant by reason of
01 negligent or improper work or breach of contract in the conduct of the contracting 02 business or home inspection activity, as applicable, or by reason of damage to 03 public facilities occurring in the course of a construction project. 04 * Sec. 15. AS 08.18.071(b) is amended to read: 05 (b) If the applicant is a general contractor, the amount of the bond shall be 06 $10,000; if the applicant is a mechanical or specialty contractor or home inspector, 07 the amount of the bond shall be $5,000. In lieu of the surety bond the applicant may 08 file with the commissioner a cash deposit or other negotiable security acceptable to the 09 commissioner in the amount specified for bonds. 10 * Sec. 16. AS 08.18.081(a) is amended to read: 11 (a) Except as provided in AS 08.18.085, a [A] person having a claim against 12 a contractor or home inspector for any of the items referred to in AS 08.18.071 may 13 bring suit upon the bond in the district court of the judicial district in which venue lies. 14 A copy of the complaint shall be served by registered or certified mail upon the 15 commissioner at the time suit is filed, and the commissioner shall maintain a record, 16 available for public inspection, of all suits commenced. Two additional copies shall 17 be served upon the director of the division of insurance with the payment to the 18 director of a fee set under AS 21.06.250, taxable as costs in the action. This service 19 upon the director shall constitute service on the surety, and the director shall transmit 20 the complaint or a copy of it to the surety within 72 hours after it has been received. 21 The surety upon the bond is not liable in an aggregate amount in excess of that named 22 in the bond, but in case claims pending at any one time exceed the amount of the bond, 23 the claims shall be satisfied from the bond in the following order: 24 (1) labor, including employee benefits; 25 (2) taxes and contributions due the state, city, and borough, in that 26 order; 27 (3) material and equipment; 28 (4) claims for breach of contract; 29 (5) repair of public facilities. 30 * Sec. 17. AS 08.18 is amended by adding a new section to read: 31 Sec. 08.18.085. Legal actions against home inspector. (a) Notwithstanding
01 contrary provisions of AS 08.18.081 or AS 09.10, a person may not bring an action 02 against an individual registered under this chapter based on a home inspection report 03 unless the action is commenced within 04 (1) two years after the date of the home inspection report if the report 05 related to a new home; and 06 (2) one year after the date of the home inspection report if the report 07 related to an existing home. 08 (b) The limitations in (a) of this section apply to all actions based on a home 09 inspection report, regardless of whether the action is based on breach of contract, 10 personal injury or death, property damage, or another source of liability. The 11 limitations may not be waived by contract. 12 (c) An individual registered as a home inspector or associate home inspector 13 under this chapter is not liable to a person for damages that arise from an act or 14 omission relating to a home inspection performed by the individual if the person is 15 (1) not a party to the transaction for which the home inspection was 16 conducted; or 17 (2) unlawfully in receipt of the home inspection report related to the 18 home inspection. 19 (d) Contractual provisions that purport to limit the liability of a home 20 inspector to the cost of the home inspection report are contrary to public policy and 21 void. 22 * Sec. 18. AS 08.18.111 is amended to read: 23 Sec. 08.18.111. Advertising bond and insurance. Contractors and home 24 inspectors may not advertise that they are bonded and insured simply because they 25 have complied with the bond and insurance requirements of this chapter. 26 * Sec. 19. AS 08.18.115 is amended to read: 27 Sec. 08.18.115. Return of cash deposit. (a) A contractor or home inspector 28 who has filed a cash deposit and who ceases doing business as a contractor or home 29 inspector may request the return of as much of that cash deposit as is held by the 30 commissioner by 31 (1) filing a notarized statement with the commissioner that the
01 contractor or home inspector has ceased doing business as a contractor or home 02 inspector, as applicable; and 03 (2) filing a notarized statement with the commissioner at least three 04 years after filing the statement in (1) of this subsection that [WHICH] 05 (A) requests return of the cash deposit; 06 (B) certifies that the former contractor or home inspector has 07 not been engaged in business as a contractor or home inspector, as 08 applicable, for at least three years; and 09 (C) certifies that to the best of the contractor's or home 10 inspector's knowledge no action has been commenced upon the cash deposit 11 that [WHICH] has not been dismissed or reduced to a final judgment that 12 [WHICH] has been satisfied. 13 (b) The commissioner, after paying any judgments against the cash deposit 14 under AS 08.18.081(b), shall return the remainder of a former contractor's or former 15 home inspector's cash deposit to the contractor or home inspector, as applicable, if 16 (1) the former contractor or former home inspector has complied 17 with (a) of this section; and 18 (2) no action has been commenced upon the cash deposit that 19 [WHICH] has not been dismissed or reduced to a final judgment that [WHICH] has 20 been satisfied. 21 * Sec. 20. AS 08.18.116 is amended to read: 22 Sec. 08.18.116. Investigations. Either the Department of Community and 23 Economic Development or the Department of Labor and Workforce Development 24 may investigate alleged or apparent violations of this chapter relating to contractors. 25 The Department of Community and Economic Development may investigate 26 alleged or apparent violations of this chapter relating to home inspection 27 activities. These departments, upon showing proper credentials, may enter, during 28 regular hours of work, a construction site where it appears that contracting work is 29 being done. The departments may make inquiries about the identity of the contractor 30 or the person acting in the capacity of a contractor. The Department of Community 31 and Economic Development may make inquiries about the identity of a home
01 inspector or a person acting in the capacity of a home inspector. Upon demand, a 02 contractor or home inspector or person acting in the capacity of a contractor or home 03 inspector, or that person's representative, shall produce evidence of current 04 endorsement, if applicable, and registration. 05 * Sec. 21. AS 08.18.117 is amended to read: 06 Sec. 08.18.117. Issuance of citations. Either the Department of Community 07 and Economic Development or the Department of Labor and Workforce Development 08 may issue a citation for a violation if there is probable cause to believe a person has 09 violated this chapter with respect to contractor activities. The Department of 10 Community and Economic Development may issue a citation for a violation if 11 there is probable cause to believe a person has violated this chapter with respect 12 to home inspection activities. Each day a violation continues after a citation for the 13 violation has been issued constitutes a separate violation. 14 * Sec. 22. AS 08.18.121(a) is amended to read: 15 (a) If the insurance required in AS 08.18.101 ceases to be in effect, the 16 registration of the contractor or home inspector shall be suspended until the insurance 17 has been reinstated. 18 * Sec. 23. AS 08.18.121(b) is amended to read: 19 (b) If a final judgment impairs the liability of the surety upon the bond or 20 depletes the cash deposit so that there is not in effect a bond undertaking or cash 21 deposit in the full amount prescribed in AS 08.18.071, the registration of the 22 contractor or home inspector involved shall be suspended until the bond liability in 23 the required amount, unimpaired by unsatisfied judgment claims, has been furnished. 24 * Sec. 24. AS 08.18.121(c) is amended to read: 25 (c) If a bonding company cancels its bond of a contractor or home inspector, 26 the contractor's or home inspector's registration shall be revoked. The contractor or 27 home inspector may again obtain registration by complying with the requirements of 28 this chapter. 29 * Sec. 25. AS 08.18.121(d) is amended to read: 30 (d) If a registered contractor or registered home inspector fails to fulfill the 31 contractor's or home inspector's obligations as set out in AS 08.18.071, the
01 contractor's or home inspector's registration shall be suspended for a period of time 02 the commissioner determines is appropriate. After three suspensions, the contractor's 03 or home inspector's registration may be permanently revoked. 04 * Sec. 26. AS 08.18.121(f) is amended to read: 05 (f) If the Department of Community and Economic Development or the 06 Department of Labor and Workforce Development determines that a contractor or [A] 07 person acting in the capacity of a contractor [,] is in violation of this chapter, that 08 department may give written notice to the person prohibiting further action by the 09 person as a contractor. If the Department of Community and Economic 10 Development determines that a home inspector or a person acting in the capacity 11 of a home inspector is in violation of this chapter, the department may give 12 written notice to the person prohibiting further action by the person as a home 13 inspector. The prohibition in a notice given under this subsection continues until 14 the person has submitted evidence acceptable to the appropriate [THAT] department 15 showing that the violation has been corrected. 16 * Sec. 27. AS 08.18.123 is amended to read: 17 Sec. 08.18.123. Denial, suspension, and revocation of endorsement or 18 home inspector registration. 19 (a) The department may suspend, revoke, or refuse to grant or renew a 20 residential contractor endorsement, a home inspector registration, or an associate 21 home inspector registration upon a finding that 22 (1) the application is fraudulent or misleading; 23 (2) the endorsement holder or registrant [CONTRACTOR] has 24 knowingly violated this chapter or a lawful order or regulation of the department; 25 (3) the endorsement holder or registrant [CONTRACTOR] is 26 incompetent or has engaged in fraudulent practices. 27 (b) Proceedings for the denial, suspension, or revocation of residential 28 contractor endorsement, home inspector registration, or associate home inspector 29 registration are governed by AS 44.62 (Administrative Procedure Act). 30 * Sec. 28. AS 08.18.131 is amended to read: 31 Sec. 08.18.131. Injunction; civil penalty. In an action instituted in the
01 superior court by the Department of Community and Economic Development or the 02 Department of Labor and Workforce Development, the court may enjoin a person 03 from acting in the capacity of a contractor in violation of this chapter. In an action 04 instituted in the superior court by the Department of Community and Economic 05 Development, the court may enjoin a person from acting in the capacity of a 06 home inspector in violation of this chapter. In addition to other relief, the court may 07 impose a civil penalty of not more than $250 for each violation. Each day that an 08 unlawful act continues constitutes a separate violation. 09 * Sec. 29. AS 08.18.141(a) is amended to read: 10 (a) A contractor, home inspector, or [A] person acting in the capacity of a 11 contractor or home inspector who knowingly violates AS 08.18.011 or 08.18.025 is 12 guilty of a class B misdemeanor. A person who violates another provision of this 13 chapter is guilty of a violation punishable under AS 12. 14 * Sec. 30. AS 08.18.151 is amended to read: 15 Sec. 08.18.151. Legal actions by contractor or home inspector. A person 16 acting in the capacity of a contractor or home inspector may not bring an action in a 17 court of this state for the collection of compensation for the performance of work or 18 for breach of a contract for which registration is required under this chapter without 19 alleging and proving that the contractor or home inspector was a registered contractor 20 or registered home inspector, as applicable, at the time of contracting for the 21 performance of the work. 22 * Sec. 31. AS 08.18 is amended by adding new sections to article 4 to read: 23 Sec. 08.18.152. Prohibited acts for home inspectors. An individual 24 registered under this chapter as a home inspector or associate home inspector may not 25 (1) perform or offer to perform, for an additional fee, repairs to a 26 subject property on which the home inspector or the home inspector's company has 27 prepared a home inspection report in the past 12 months; 28 (2) inspect for a fee any property in which the home inspector or the 29 home inspector's company has a financial interest or an interest in the transfer of the 30 property; 31 (3) offer or deliver compensation, an inducement, or a reward to the
01 owner of the inspected property, the broker, or the agent, for the referral of business to 02 the home inspector or the home inspector's company; 03 (4) without the written consent of the home inspection client or the 04 client's legal representative, disclose information from a home inspection report 05 prepared by the home inspector or the home inspector's company unless the disclosure 06 is made 07 (A) to a subsequent client who requests a home inspection of 08 the same premises; or 09 (B) by the home inspector in an administrative or judicial 10 proceeding in which disclosure of the home inspection report is relevant to 11 resolution of the legal issues in the proceeding; 12 (5) without the written consent of all interested parties, accept 13 compensation from more than one interested party for the same home inspection 14 services; 15 (6) accept from a person who has other dealings with a home 16 inspection client a commission or allowance, directly or indirectly, for work for which 17 the home inspector or the home inspector's company is responsible; 18 (7) accept an engagement to make an inspection or to prepare a report 19 in which the employment itself or the fee payable for the inspection is contingent upon 20 the conclusions in the report, preestablished findings, or the close of escrow. 21 Sec. 08.18.154. Limitation on home inspector's activities. A registration 22 issued under AS 08.18.022 does not authorize the holder to perform an activity for 23 which a license is required under provisions of this title that are outside of this chapter. 24 Sec. 08.18.156. Exemptions related to home inspections. (a) 25 Notwithstanding other provisions of this chapter, an individual who inspects a home is 26 not required to be registered under this chapter as a home inspector or associate home 27 inspector if the individual is 28 (1) employed by the federal or state government, a political 29 subdivision of the state, or a municipality or unincorporated community and the 30 employee is performing only duties that are within the employee's official duties; 31 (2) performing a home inspection only with respect to property that is
01 the individual's residence or in which the individual has a financial interest; 02 (3) registered as an engineer or architect under AS 08.48, prepares a 03 written report after the inspection, affixes the individual's seal to the home inspection 04 report, signs and dates the report, and puts the individual's registration number on the 05 report; 06 (4) engaged as an engineer in training or architect in training who 07 works for and is supervised by a person described in (3) of this subsection and the 08 person described in (3) of this subsection affixes the person's seal to the home 09 inspection report, signs and dates the report, and puts the person's registration number 10 on the report; 11 (5) licensed as a pesticide applicator by the Department of 12 Environmental Conservation and is performing only activities within the scope of that 13 license; 14 (6) registered as a general contractor with a residential contractor 15 endorsement under this chapter and is performing only activities within the scope of 16 that registration; 17 (7) certified as any type of real estate appraiser under AS 08.87 and is 18 performing only activities that are authorized under that certification; or 19 (8) only determining whether a building complies with the thermal and 20 lighting energy standards required by AS 46.11.040. 21 (b) Notwithstanding the definition of "home inspection" in AS 08.18.171(12), 22 an individual is not considered to be doing a home inspection for purposes of this 23 chapter if the individual 24 (1) is in the business of repairing, maintaining, or installing any of the 25 systems or components listed in AS 08.18.171(12); and 26 (2) inspects the system or component for the sole purpose of 27 determining the condition of the system or component before performing or offering 28 to perform repair, maintenance, or installation work on the system or component. 29 * Sec. 32. AS 08.18.161 is amended to read: 30 Sec. 08.18.161. Exemptions. To the extent that this chapter governs 31 contractors, this [THIS] chapter does not apply to
01 (1) an authorized representative of the United States government, the 02 State of Alaska, or a political subdivision or agency of the state; 03 (2) an officer of a court when acting within the scope of office; 04 (3) a public utility operating under the regulations of the public service 05 commission in construction, maintenance, or development work incidental to its own 06 business; 07 (4) a construction, repair, or operation incidental to the discovering or 08 producing of petroleum or gas, or the drilling, testing, abandoning, or other operation 09 of a petroleum or gas well or a surface or underground mine or mineral deposit when 10 performed by an owner or lessee; 11 (5) the sale or installation of finished products, materials, or articles of 12 merchandise that are not actually fabricated into and do not become a permanent, 13 fixed part of a structure; 14 (6) construction, alteration, or repair of personal property; 15 (7) a person who only furnished materials, supplies, or equipment 16 without fabricating them into, or consuming them in the performance of, the work of 17 the contractor; 18 (8) work on one project under one or more contracts, the aggregate 19 contract price of which for labor and materials and all other items is less than $10,000 20 [, THIS WORK BEING CONSIDERED AS OF A CASUAL, MINOR, OR 21 INCONSEQUENTIAL NATURE]; this exemption does not apply when the work is 22 only a part of a larger or major operation, whether undertaken by the same or a 23 different contractor, or when the work is divided into contracts of amounts less than 24 $10,000 for the purpose of evasion of this chapter or otherwise; this exemption does 25 not apply to a person who advertises or puts out a sign or card or other device that 26 might indicate to the public that the person is a contractor, or that the person is 27 qualified to engage in the contracting business; a contractor who performs work priced 28 at $2,500 or more, under this exemption, shall nevertheless keep in force public 29 liability and property damage insurance with coverage in at least the amounts set out 30 in AS 08.18.101; 31 (9) an owner who contracts for a project with a registered contractor;
01 (10) a person working on that person's own property, whether occupied 02 by the person or not, and a person working on that person's own residence, whether 03 owned by the person or not; 04 (11) an owner or tenant of commercial property who uses the owner's 05 or tenant's own employees to do maintenance, repair, and alteration work upon that 06 property; 07 (12) an owner who acts as the owner's own contractor and in doing so 08 hires workers on an hourly basis, hires subcontractors, purchases materials and, as 09 such, sees to the paying for all labor, subcontractors, and materials; in this case, the 10 owner shall be limited to construction of one home, duplex, triplex, four-plex, or one 11 commercial building a [PER] year; 12 (13) a person performing construction work incidental to farming, 13 dairying, agriculture, horticulture, stock or poultry raising, mining, logging, fishing, 14 clearing, or other work upon the land in rural districts for fire prevention purposes, or 15 access road building, unless the person is a licensee. 16 * Sec. 33. AS 08.18.171 is amended by adding new paragraphs to read: 17 (11) "existing home" means a residence previously occupied as a 18 residence; 19 (12) "home inspection" means a visual examination, performed in 20 accordance with standards of practice adopted by the department, of the readily 21 accessible parts of one or more of the following systems and components of a 22 residence or intended residence: 23 (A) heating and air-conditioning systems; 24 (B) plumbing and electrical systems; 25 (C) built-in appliances; 26 (D) roof, attic, and visible insulation; 27 (E) walls, ceilings, floors, windows, and doors; 28 (F) foundation and basement; 29 (G) visible interior and exterior structures; 30 (H) drainage to and from the residence; 31 (I) other systems or components as specified by the department
01 in regulations; 02 (13) "home inspector" means an individual who performs or offers to 03 perform a home inspection for a fee; 04 (14) "joint registration" means a certificate of registration that 05 authorizes an individual to inspect both new homes and existing homes; 06 (15) "knowingly" has the meaning given in AS 11.81.900; 07 (16) "new home" means a residence not previously occupied as a 08 residence; 09 (17) "residence" means 10 (A) a single-family home other than a mobile home; 11 (B) a duplex, triplex, or four-plex; or 12 (C) a residential townhouse or residential condominium unit; 13 (18) "visual examination" means an examination performed in person 14 at the physical location of the residence except that, if a method other than personal 15 physical inspection has been approved by the Alaska Housing Finance Corporation 16 under AS 18.56.300(b), use of the other approved method constitutes a visual 17 examination under this chapter. 18 * Sec. 34. AS 18.56.300(b) is amended to read: 19 (b) As a condition of a commitment to purchase or approve a loan under this 20 section for residential housing the construction of which begins after June 30, 1992, 21 the corporation shall require inspection of the unit of residential housing that is the 22 subject of the loan. The inspection must be performed by a municipal building 23 inspector, by a person who is approved or certified to perform residential inspections 24 by the International Conference of Building Officials or the International Association 25 of Electrical Inspectors, by an individual who is registered under AS 08.18 to 26 perform home inspections for new construction [OR, WHEN THE UNIT OF 27 RESIDENTIAL HOUSING IS LOCATED IN A RURAL AREA], by an architect 28 registered under AS 08.48, by an engineer registered under AS 08.48, or by another 29 person approved by the corporation. When the unit of residential housing is located in 30 a rural area, the person who makes the inspection may use methods other than a 31 personal physical inspection to make the inspection if the method is approved by the
01 corporation, and variations from the applicable code may be accepted at the 02 corporation's discretion, if the person authorized to inspect the unit under this 03 subsection satisfies the corporation that the variation does not adversely affect the 04 structural integrity of the unit or the health and safety of the residents. The person 05 who makes the inspection shall determine whether the construction conforms to 06 relevant provisions of the construction codes of the municipality or of the state 07 building code, as applicable, at each of the following stages of construction: 08 (1) plan approval; 09 (2) completion of footings and foundations; 10 (3) completion of electrical installation, plumbing, and framing; 11 (4) completion of installation of insulation; 12 (5) final approval. 13 * Sec. 35. AS 18.56.300(b) is amended to read: 14 (b) As a condition of a commitment to purchase or approve a loan under this 15 section for residential housing the construction of which begins after June 30, 1992, 16 the corporation shall require inspection of the unit of residential housing that is the 17 subject of the loan. The inspection must be performed by a municipal building 18 inspector, [BY A PERSON WHO IS APPROVED OR CERTIFIED TO PERFORM 19 RESIDENTIAL INSPECTIONS BY THE INTERNATIONAL CONFERENCE OF 20 BUILDING OFFICIALS OR THE INTERNATIONAL ASSOCIATION OF 21 ELECTRICAL INSPECTORS,] by an individual who is registered under AS 08.18 to 22 perform home inspections for new construction, by an architect registered under 23 AS 08.48, by an engineer registered under AS 08.48, or by another person approved 24 by the corporation. When the unit of residential housing is located in a rural area, the 25 person who makes the inspection may use methods other than a personal physical 26 inspection to make the inspection if the method is approved by the corporation, and 27 variations from the applicable code may be accepted at the corporation's discretion, if 28 the person authorized to inspect the unit under this subsection satisfies the corporation 29 that the variation does not adversely affect the structural integrity of the unit or the 30 health and safety of the residents. The person who makes the inspection shall 31 determine whether the construction conforms to relevant provisions of the
01 construction codes of the municipality or of the state building code, as applicable, at 02 each of the following stages of construction: 03 (1) plan approval; 04 (2) completion of footings and foundations; 05 (3) completion of electrical installation, plumbing, and framing; 06 (4) completion of installation of insulation; 07 (5) final approval. 08 * Sec. 36. AS 36.30.050(b) is amended to read: 09 (b) A person who desires to be on a list shall submit to the commissioner 10 evidence of a valid Alaska business license. A biennial fee may be established by 11 regulation in an amount reasonably calculated to pay the costs of administering this 12 section. A construction contractor shall also submit a valid certificate of registration 13 as a contractor issued under AS 08.18. The commissioner, by regulation, may require 14 submission of additional information. 15 * Sec. 37. AS 36.30.115(a) is amended to read: 16 (a) Within five working days after the identification of the apparent low bidder 17 for a construction contract, the apparent low bidder shall submit a list of the 18 subcontractors the bidder proposes to use in the performance of the construction 19 contract. The list must include the name and location of the place of business for each 20 subcontractor, evidence of each subcontractor's valid Alaska business license, and 21 evidence of each subcontractor's registration as a contractor under AS 08.18. If a 22 subcontractor on the list did not have a valid Alaska business license and a valid 23 certificate of registration as a contractor under AS 08.18 at the time the bid was 24 opened, the bidder may not use the subcontractor in the performance of the contract, 25 and shall replace the subcontractor with a subcontractor who had a valid Alaska 26 business license and a valid certificate of registration as a contractor under AS 08.18 27 at the time the bid was opened. 28 * Sec. 38. AS 36.30.210(b) is amended to read: 29 (b) An offeror for a construction contract shall submit evidence of the offeror's 30 registration as a contractor under AS 08.18. A request for sealed proposals for a 31 construction contract, except a design-build construction contract, must require the
01 offeror, no later than five working days after the proposal that is the most 02 advantageous to the state is identified, to list subcontractors the offeror proposes to use 03 in the performance of the construction contract. The list must include the information 04 required under AS 36.30.115(a). The provisions of AS 36.30.115(b) - (g) that apply to 05 a construction contractor or an apparent low bidder apply to offerors submitting 06 competitive sealed proposals for construction contracts, except design-build 07 construction contracts. 08 * Sec. 39. AS 36.90.290(1) is amended to read: 09 (1) "prime contractor" means a person required to be registered as a 10 contractor under AS 08.18 who has a contract with the state or a political subdivision 11 of the state to provide materials or services, other than as an employee, for a public 12 construction or public works project; 13 * Sec. 40. AS 45.50.471(b) is amended by adding a new paragraph to read: 14 (45) violating AS 08.18.023(b) or 08.18.152. 15 * Sec. 41. AS 18.56.300(c) is repealed. 16 * Sec. 42. The uncodified law of the State of Alaska is amended by adding a new section to 17 read: 18 APPLICABILITY. The change made by sec. 41 of this Act applies to causes of action 19 that accrue on or after July 1, 2005. 20 * Sec. 43. The uncodified law of the State of Alaska is amended by adding a new section to 21 read: 22 REGULATIONS. The Department of Community and Economic Development may 23 proceed to adopt regulations to implement this Act. A regulation adopted under this section 24 takes effect under AS 44.62 (Administrative Procedure Act) but not before the effective date 25 of the law implemented by the regulation. 26 * Sec. 44. The uncodified law of the State of Alaska is amended by adding a new section to 27 read: 28 TRANSITIONAL LICENSING PROVISIONS. (a) Notwithstanding AS 08.18.022, 29 added by sec. 7 of this Act, the Department of Community and Economic Development shall 30 issue a certificate of joint registration that is valid until January 1, 2006, to an individual who 31 submits to the department satisfactory evidence of being in the business of home inspection in
01 the state at the time of application for registration under this subsection and of having 02 (1) been in the business of home inspection in the state on October 1, 2002; 03 and 04 (2) passed the building inspector examination or property maintenance and 05 housing inspector examination given by the International Conference of Building Officials. 06 (b) Notwithstanding AS 08.18.022, added by sec. 7 of this Act, the Department of 07 Community and Economic Development shall issue a certificate of registration to practice 08 home inspection of previously occupied residences that is valid until January 1, 2006, to an 09 individual who submits to the department satisfactory evidence of being in the business of 10 home inspection in the state at the time of application for registration under this subsection 11 and of having passed 12 (1) the national home inspector examination given by the American Society of 13 Home Inspectors, American Home Inspectors Training Institute, or National Association of 14 Home Inspectors; or 15 (2) the examination of the Examination Board of Professional Home 16 Inspectors. 17 (c) Notwithstanding AS 08.18.022, added by sec. 7 of this Act, the Department of 18 Community and Economic Development shall issue a certificate of registration to practice 19 home inspection of new construction that is valid until January 1, 2006, to an individual who 20 submits to the department satisfactory evidence of being in the business of home inspection in 21 the state at the time of application for registration under this subsection and of having passed 22 the combination inspector examination or the combination dwelling inspector examination 23 given by the International Conference of Building Officials. 24 (d) Notwithstanding AS 08.18.022, added by sec. 7 of this Act, the Department of 25 Community and Economic Development shall issue a certificate of registration as an associate 26 home inspector that is valid until January 1, 2006, to an individual who submits to the 27 department satisfactory evidence of being employed by an individual who is in the business of 28 home inspection and is registered under this section or under AS 08.18. 29 (e) A certificate of registration issued under this section may not be renewed or 30 extended. 31 (f) Except as provided in (e) of this section, a certificate of registration as a home
01 inspector or associate home inspector issued under this section is considered to be a certificate 02 of registration as a home inspector or associate home inspector issued under AS 08.18.022, 03 added by sec. 7 of this Act. 04 (g) In this section, "joint registration" has the meaning given in AS 08.18.171, as 05 amended by sec. 33 of this Act. 06 * Sec. 45. AS 08.18.011(c) - (f), added by sec. 5 of this Act; AS 08.18.023, added by sec. 7 07 of this Act; AS 08.18.085, added by sec. 17 of this Act; AS 08.18.151, as amended by sec. 30 08 of this Act; and the amendment of AS 18.56.300(b), made by sec. 34 of this Act, take effect 09 July 1, 2004. 10 * Sec. 46. Section 35 of this Act takes effect January 1, 2006. 11 * Sec. 47. Sections 41 and 42 of this Act take effect July 1, 2005. 12 * Sec. 48. Except as provided in secs. 45 - 47 of this Act, this Act takes effect immediately 13 under AS 01.10.070(c).